[PMC Daily Consulting Insight] The two triangles

Philip Morgan

The next cohort of The Expertise Incubator begins Jan 13, 2020. If you're curious, let me know.

I was clearly making him uncomfortable.

This was during a strategy call yesterday with someone who'd bought the top tier of The Positioning Manual, which includes a strategy call.

We were talking about this idea, which I think I've shown you before:

(Those triangles are hand-drawn, so they're not the same area. But pretend like they are.)

My client is operating a business that looks like the one on the left. He wants more revenue.

He specifically mentioned wanting more revenue per client, so I explored with him the idea of the business on the right. He heard me out, and had multiple objections for why the lower volume/higher price model wouldn't work for him.

He's not sure there are clients out there who will pay that much. (Vilfredo Pareto disagrees, but go on...)

He's never talked to prospects who would value a premium experience at a premium price. (I've never talked to a convicted murderer, but that doesn't mean they don't exist.)

I made my case, heard his objections, and then we moved on to the multiple ways he can optimize the kind of business he is comfortable with. The one on the left, which features more clients at a relatively lower price point.

That's an imminently optimizable business. You can improve positioning, lead flow, increase internal efficiencies, engineer pricing to improve profitability, and numerous other optimizations.

I'm not convinced either model is inherently better.

I am convinced that if one model constantly makes you uncomfortable because it squeezes you against immovable market dynamics or hard-to-change inner mental or emotional dynamics, then it's not a good model for you.

We can make certain business decisions far more quickly than we can cultivate the emotional resources necessary to implement those decisions.

That doesn't mean we should avoid those decisions. But at the same time, we shouldn't ignore the role our emotions play in turning those decisions into results.